FTSE remains in the red following Next’s warning

The FTSE 100 struggled to gain positive momentum as Next’s warning continued to cast a shadow over the retail sector.

West Texas Intermediate and Brent crude oil rallied 1% to $52.90 and $56 per barrel, respectively.

Gold was 0.3% higher at $1,163 per ounce and copper jumped 2.6% to $5,621 per tonne.


Fashion retailer Next (NXT) issued a profit warning causing the stock to plummet 11.1% to £42.37. The company reduced profit guidance for the year to January 2017 from the previous range of £785m to £825m down to £792m due to weak Christmas trading. It also warned that sales in the coming 12 months will be affected by a squeeze in consumer spending.

The bad news hit rivals Marks & Spencer (MKS) by 5.9% and Primark-owner Associated British Foods (ABF) by 3.6%.


B&M European Value Retail (BME) fared better as third quarter revenue rose by over a fifth to £789.1m as a result of record Christmas sales. The shares gained 4.2% to 288.7p.

Housebuilder Bovis Homes (BVS) slipped 3.1% after broker Jefferies moved its recommendation on the company from ‘buy’ to ‘hold’.

Emergency power provider Aggreko (AGK) won a $450m contract to supply power to the Olympic Winter Games in South Korea in 2018.

The market was unimpressed by Ultra Electronics’ (ULE) £9.7m contract extension for the supply and production of sonobuoys for the Royal Navy’s Merlin Mk2 maritime patrol helicopter fleet.


Brand protection tech developer Spectra Systems (SPSY) soared 38.7% to 35.3p on an optimistic trading update. The company reported it expects profits to significantly exceed market expectations, driven by improved margins.

FastForward Innovations (FFWD) announced its investee company Vested Finance received a takeover offer, prompting a 20% rally in the stock.

Gas storage firm Infrastrata (INFA) crashed 22% to 0.5p as the board indicated it will need to consider if the company can continue as a going concern if it cannot secure short-term funding in January.

Story provided by StockMarketWire.com